Price elasticity of demand (consumers responsiveness to a change in a product's price) is determined by the number of substitute products available in the relevant market, the percent of consumers budget the product's purchase represents, and the time consumers have to respond to the product's price change.
Pick a specific product (a brand name) and demonstratehow this product's price elasticity of demand changed over the period 2009-2014 (the last five years ). BE SPECIFIC along the time line - the following factors are interrelated - put into a cohesive paragraph - style discussion - DO NOT USE BULLETS.
• What price changes have occurred? Magnitude? When? Be specific.
• What substitute products are relevant to your analysis? What, if any, substitutes have come into or gone out of, the relevant market? When? Explain the impact. Be specific.
• Has the percent of consumer budget that the purchase of the product represents changed? If changed? What was the magnitude of this change? Explain. Be specific,
• Was there enough time across this 5-year period for consumer's to respond? Relate back to the previous discussion.